Stable Price Behavior of Natural Rubber and Latex

The downward trend in rubber and latex prices seems to have come to an end.
Data from the past week shows stable price behavior. What are the reasons? On one hand, supply is beginning to recover, although it has not yet reached the levels of previous years; on the other hand, demand is weak, especially due to stagnation in automobile sales in China.

Prices are stabilizing in a context of weak demand.

Latex and natural rubber prices appear to have stabilized, with a rebound in the second half of the week.
Most of the correction seems to have taken place, and China's stocks are at low levels. However, the latest news suggests some weakness in the short-term demand for natural rubber, which could lead to further declines.
Whether this happens or not will depend on the evolution of supply, which, although it has recovered, remains at historically low levels.

Automobile sales in China are stagnating.

Automobile sales in China fell 6.9% year-on-year in June. It's true that there was some improvement compared to the total number of vehicles sold in the previous month, but overall, the trend shows that sales are stagnant at a level significantly lower than at the end of last year.
This sets a scenario of low demand expectations for natural rubber, as the sector is the main buyer. If the trend continues, it will be an important factor pressing prices downward.

In other news from China, the third plenary session of the Communist Party has ended. Generally, there were no very important announcements, although the official communiqué hints that the focus will be on boosting the technology sector, and there will be greater state intervention. Without clarity, we do not expect impacts on commodity prices.

Is the U.S. economy slowing down?
Leading indicators (which aim to provide early information about the level of activity) show signs of slowing in the U.S. economy, the world's second-largest buyer of natural rubber.
The IMF expressed concern about lower growth, which occurs in a context of still high inflation.
However, for now, it has not modified its growth projection.